E-cigarette maker Juul Labs Inc has agreed to pay $438.5m to settle claims by 34 US states and territories that it downplayed its products' risks and targeted underage buyers, several states announced Tuesday.
This comes after a two-year investigation led by Connecticut, Texas and Oregon.
As part of the settlement, the company will refrain from various forms of marketing, including using cartoons, product placement and depictions of users under 35, reports Reuters.
Juul, which has not admitted wrongdoing, called the settlement “a significant part of our ongoing commitment to resolve issues from the past”, adding that the marketing restrictions were consistent with its practices since 2019, when it pulled most flavours from the market and halted much of its advertising under pressure from regulators.
Juul previously settled similar claims by Arizona, North Carolina, Louisiana and Washington. Some states, including New York, California, Massachusetts and Illinois, are continuing to pursue claims against Juul.
Thousands of local governments and individuals have also brought lawsuits against the company, the first one in November, brought by San Francisco’s school district. The next trial, scheduled for January, will be in a case brought by the family of a Tennessee teenager who allegedly became addicted to Juul's e-cigarettes.
The US Food and Drug Administration (FDA) in June briefly banned the products, though it put the ban on hold and agreed to reconsider after the company appealed.
Reuters article – Juul to pay about $439 million to settle e-cigarette marketing probe (Open access)
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